NEW EU ENERGY LAW
21 Nov, 2011
EU legislation will mean energy outages are obliged to be disclosed
A new law that see energy companies being forced to reveal details of nuclear shut downs and timings of gas-field maintenance, is set to be implemented at the end of this year.
The EU legislation will not cover information in outages on oilfields, Reuters reported, but officials have said that they are still working on the exact details of what energy companies will be obliged to publish.
Making insider trading and market manipulation illegal is the initial stage of the legislation and this will be binding 20 days after the publication in the EU Official Journal, which is anticipated in the next few weeks.
According to Reuters, law firm Cleary Gottlieb commented that inside information would refer to anything related to ‘the capacity and use of the facilities for production, storage, consumption or transmission of electricity or natural gas and use of LNG facilities’.
There are concerns regarding the legislative move from within the energy industry. A gas trader at a large European utility, who asked to remain anonymous told Reuters: “The issue (for traders) is that everyone wants to know what the other one is doing, but no one wants to reveal their information. Regulation is a way to enforce this, so people won’t have the choice.”
He added: “Enforcing these rules on companies will cost quite a lot. Updating their systems, etc. requires quite a lot of work.”